Spending on life insurance, retirement savings, investment in property, children’s education, top the list of how the majority of UAE residents plan to use their annual bonuses, according to the findings of a survey commissioned by Zurich International Life (Zurich), part of Zurich Insurance Group.
The survey, conducted by YouGov, showed that 82% of UAE residents are adopting a long-term perspective when planning the use of their annual bonuses, expressing their intention to invest for their future.
According to the survey, the top priorities include investing in property (24%), saving for retirement (17.6%), paying off debts (15%), saving for their children’s education (14%), investing in funds (13%), and buying life insurance (11%). Some residents, though, opted for luxury and holiday spending.
Conducted in January 2023, the survey covered 1,200 residents in the UAE, including parents and married residents across various income groups, nationalities, occupations, age groups, and gender.
In 2022, almost half of the residents surveyed received a bonus and over 5% of residents said their bonus was at least AED50,000 ($13,600). The study revealed that 31% of residents received a bonus of up to AED20,000 and 12% of up to AED50,000.
“It is encouraging to see that most UAE residents are now feeling an increased sense of responsibility for their own financial well-being. Our survey shows that the majority of residents are adopting a long-term perspective when planning how to utilise their annual bonuses. To secure their financial future, they will need expert financial advice to allocate their funds wisely, e.g., saving for their retirement, future property investment, children’s education or life insurance,” said Zurich in the Middle East head of IFA distribution Taru Singhal.
Among the poll respondents, 42% of those aged between 18 to 24 were largely enthusiastic about securing a decent retirement life, while 22% of those aged 45 years and above said investing in life insurance was a top priority.
The survey also sought to understand the motivating factors that influenced the UAE residents’ choice in the use of their bonuses. It found that 75% of the respondents were influenced by their family and friends. In comparison, employer and market trends played a significant role at 22%. Other factors included influence by peers (18%) and recommendations by a financial adviser (13%). M